On Wednesday, 15 July 2026, at 9:00 a.m. local time, the CSG Group, through its U.S. subsidiary MSM North America, officially began construction of the Future Artillery Complex (FAC) at the Iowa Army Ammunition Plant (IAAAP). The ceremony marked the launch of one of the U.S. Army’s most significant modernization projects in the field of large-caliber ammunition production and represents another important milestone in CSG’s long-term expansion in the United States. The facility is owned by the U.S. government and will be operated by MSM North America under the GOCO, or government-owned, contractor-operated, model.
The groundbreaking ceremony was attended by representatives of the U.S. Army, industry partners and the CSG Group, led by its CEO and Chairman of the Board, Michal Strnad.
USD 635 million contract and capacity of 36,000 shells per month
Construction follows the contract for the design, construction and commissioning of the Future Artillery Complex, which the U.S. Army awarded to MSM North America in 2025. The new plant will be owned by the U.S. government and operated by MSM North America as the private-sector partner under the GOCO (government-owned, contractor-operated) model.
Once completed, the facility will replace a production line that has served the U.S. Army for more than 50 years. With a capacity of up to 36,000 loaded 155 mm artillery shells per month, it will become the world’s most advanced facility of its kind and a key element in the modernization and expansion of the U.S. ammunition industrial base.
“Breaking ground on the Future Artillery Complex is much more than the start of construction of a new production facility. It demonstrates what can be achieved when the U.S. Army and industry work together with a shared commitment to strengthening allied defence capabilities. We are proud that MSM North America and CSG have become trusted partners in this strategically important program, contributing decades of ammunition manufacturing experience to help build capabilities that will serve the United States and its allies for many years to come,” said Michal Strnad, CEO and Chairman of the Board of Directors of CSG.
MSM North America is part of MSM GROUP
MSM North America was established in 2025 as part of MSM GROUP, an industrial and technology group operating within CSG. MSM GROUP brings together companies with a long history in the defense industry and specializes in manufacturing and services for medium- and large-caliber ammunition.
The U.S. company was established to build a presence in the United States, provide key products and services to the U.S. Armed Forces and help strengthen the resilience of the U.S. ammunition industrial base. MSM North America is the prime contractor and systems integrator for the Future Artillery Complex. In cooperation with the U.S. Army and a broad network of U.S. industry partners, it is responsible for the design, construction and implementation of the entire project.
CSG continues to expand its industrial presence in the United States
The Future Artillery Complex is part of the CSG Group’s broader strategy to establish itself as a major industrial partner in the United States. CSG currently employs more than 4,000 people in the United States, primarily through The Kinetic Group, one of the leading U.S. manufacturers of small-caliber ammunition. The FAC project is expected to create approximately 70 highly skilled jobs directly at the Iowa Army Ammunition Plant and contribute to the continued growth of MSM North America and its activities in the U.S. defense market.
In addition to MSM North America, which focuses on medium- and large-caliber ammunition production and is delivering the FAC project, CSG has also established CSG Land Systems North America. The company represents Excalibur Army, Tatra Defence and Tatra Trucks in the U.S. market in the areas of artillery systems, tactical vehicles and land platforms. These activities confirm the CSG Group’s long-term commitment to strengthening the U.S. defense industrial base, creating jobs in the United States and further expanding the group’s manufacturing footprint in North America.
Production capacity for future generations
Maj. Brian K. Schwartzkopf of the U.S. Army’s Joint Program Executive Office Armaments & Ammunition (JPEO A&A) emphasized that the Future Artillery Complex is intended to meet current operational needs while strengthening the U.S. ammunition industrial base for generations to come.
“This facility, combined with other modernization efforts across the United States, helps us achieve the Army’s goal of producing 100,000 155mm rounds per month. It’s a critical part of securing that capability for the future.”
He also emphasized that the investment was conceived with a multi-decade horizon. “We’re securing a sustainable, lethal capability for decades to come. My great-great-grandkids could be firing rounds produced from this facility.”
Maj. Schwartzkopf also praised the exceptional pace of the project’s delivery.
“The collaboration between the U.S. Army and MSM has allowed us to execute this project at a pace that’s rarely seen. We’re breaking ground in less than twelve months from contract award.”
Automation will improve production safety and efficiency
According to Jason W. Gaines, CEO of MSM North America, the project combines a long-term strategic vision with state-of-the-art manufacturing technologies. “In order for this capability to be sustainable for the next 50 years, this new, modern Future Artillery Complex had to come to fruition.”
He added that automation is being introduced where it delivers genuine value. “We’re not introducing automation for the sake of automation. We’re introducing it where it makes sense – improving safety, increasing efficiency, and delivering a consistent product.”
Jason Gaines also praised the close cooperation between the U.S. Army, industry and all project partners.
“This team of Army, industry, and partners has set a new standard for how modernization projects are executed – from design through construction and commissioning.”
European know-how strengthens the U.S. defense industrial base
The project draws on the CSG Group’s extensive experience in ammunition manufacturing. CSG is one of Europe’s leading manufacturers of medium- and large-caliber ammunition, with a high degree of vertical integration across the manufacturing chain. Experts from the CSG Group’s European ammunition plants are also involved in delivering the Future Artillery Complex, bringing decades of ammunition development and manufacturing experience to the project.
Construction is expected to be completed in approximately 40 months, while commissioning of the facility, including the First Article Acceptance Testing process, is scheduled within 48 months of the contract award. Production is expected to begin in 2029.
The Future Artillery Complex was designed as a long-term strategic manufacturing facility for the United States. Its high level of automation, modern safety standards and flexible production will provide the U.S. Army with resilient production capacity for 155 mm ammunition for decades to come and support the future needs of the United States and its allies.